JACKSONVILLE, Fla. — Florida's Chief Financial Officer Jimmy Patronis says the state will hold Farmers Insurance accountable for leaving hundreds of thousands of Florida policyholders behind.
The insurance company announced Tuesday it is planning to shut down 30% of its business in Florida and is no longer renewing or writing new auto, home and umbrella policies.
This move could reduce the availability and affordability of insurance coverage in Florida. A Jacksonville law group says it's smart to call a law firm for extra protection before contacting your insurance company.
If you currently have an open claim for damage with Farmers Insurance, Green Law Group Owner Paul Green says the claim is still good and will move forward.
"Farmers are still on the hook for damage that occurred while those policies were in place. Farmers took premiums, they deposited that money, they're earning interest on that money. It's a two way contract. They're going to be liable for for any of the covered perils," Green Law Group owner Paul Green said.
Green says regardless of coverage, homeowners should consult a lawyer first before the insurance company to check their homes for damages, stains or leaks sooner rather than later.
"Let's get someone out there to check your house, let's see if there's damage. If the damage is storm related, then we need to file that claim. We need to make sure that it's covered. If you're paying premiums and you have a covered claim, you want to get that in before these carriers leave. Any homeowner with homeowners insurance needs to be looking at that," Green said.
Green says he wasn't shocked to hear another insurance company pull out of the state. According to the Florida Department of Financial Services website, Farmers Insurance is among more than a dozen to terminate or not renew policies in Florida. Florida's Chief Financial Officer Jimmy Patronis says the state is taking a deeper dive into Farmers Insurance complaints to determine if fines should be held against the company.
In a statement tweeted by Patronis, he says: "It is our expectation that if farmers cancels any policies, all prorated amounts must be returned to policyholders."
"The insurance companies in general are playing the odds that the insured doesn't contact an attorney. That's what they're hoping for. They send a denial letter out and the homeowner says no, we tried, and they go away. They don't know that they can fight it," Green said.
Green says the state is protecting homeowners by holding insurance companies responsible.
"I wouldn't be too loyal to farmers. They're not loyal to you. They're leaving. You know, let's find another carrier that will write policies," Green said.
Green says he predicts there will be more lawsuits filed against Farmers Insurance in response to its announcement. He advises policyholders to call a law firm before committing to new coverage.